After a complete loan application has been provided by the borrower, the creditor (lender) has the ultimate responsibility for ensuring the correct and timely delivery of disclosures to the consumer. This responsibility is in line with the requirements set forth by the Truth in Lending Act (TILA), the Real Estate Settlement Procedures Act (RESPA), and other relevant regulations.
Owner occupied properties are not mentioned in the SAFE Act. The SAFE Act defers to TILA, Sec. 103(v), which defines a habitation as a residential building, a mobile home, or individual condominium or cooperative units that house one to four families.
MLOs working with the DRE's permission need to be licensed.
Many borrowers choose to lock in the interest rate in conjunction with the MLOs in order to prevent disappointment because the 10-business day provision does not lock the interest rate.
The new regulation expressed in the Loan Estimate (LE) form, which is part of the TILA-RESPA Integrated Disclosure (TRID) rule, applies to a variety of mortgage transactions involving consumer borrowers. However, it generally does not apply to loans made to a business entity. The TRID rule primarily focuses on transactions involving individual consumers and their residential mortgage loans.
It is advised that the student become quite familiar with the new forms, including what is on them, where various things are located, what the various provisions mean, and what their purposes are, in order to prepare well for the test. Consider the advantages for the consumer.
Short Sales are not covered by the SAFE Act because they are more a result of the economy than of a particular person's actions.
TILA-regulated tolerance limits on settlement service provider charges that can change by any amount do not include "Transfer taxes."
Under the TILA-RESPA Integrated Disclosure (TRID) rule, certain charges and fees provided by settlement service providers are subject to tolerance limits, meaning that they can change by a certain percentage without affecting the good faith determination on the Loan Estimate (LE).
Keep in mind this does not apply to the interest rate or charges and terms dependent on the interest rate, like per diem interest, or adjusted origination charges, or the charge or credit for the interest rate chosen.
If the Mortgage Loan Officer (MLO) extends the period of availability, the estimate of the costs and terms for all settlement services supplied in the Loan Estimate (LE) form may continue to be available for a longer time.
The original Loan Estimate (LE) is determined to have been made in good faith by comparing the difference between the initial cost estimates provided in the Loan Estimate and the final costs that are charged at loan closing. This comparison is used to assess whether the lender or creditor provided the borrower with accurate and consistent information about the costs associated with the mortgage loan.
If the Mortgage Loan Officer (MLO) is preparing the Loan Estimate (LE) form but does not know the wholesale lender's name, the appropriate way to handle this is to leave the space on the form blank. It's important to ensure that the information provided on the Loan Estimate form is accurate and complete.
The unique identity number's function is to hold MLOs responsible for the tasks they perform.
An MLO designation is not required for brokers who engage in real estate brokerage activities.
Before receiving a license, a 20-hour course is a one-time requirement that covers both federal and state-specific issues.
According to the SAFE Act, this qualifies as a factual statement.
